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Best Short-Term Business Loans of May 2025

Written by

Randa Kriss

Edited by

Sally Lauckner

Last updated on May 19, 2025

Fact checked and reviewed
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Compare personalized short-term business loan offers, with terms ranging from three to 24 months. Choose why you need funding to get started.

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How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Best Short-Term Business Loans From Our Partners

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Best Short-Term Business Loans From Our Partners

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Bluevine - Line of credit

5.0 

Best for fast funding

Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%

Bluevine - Line of credit

Best for fast funding

5.0 
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%

Expansion Capital Group - Merchant cash advance

Best for bad credit

Max loan amount
$300,000
Min. credit score
500

Expansion Capital Group - Merchant cash advance

Best for bad credit

Max loan amount
$300,000
Min. credit score
500

OnDeck - Online term loan

4.8 

Best for working capital needs

Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%

OnDeck - Online term loan

Best for working capital needs

4.8 
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%

Fora Financial - Online term loan

4.7 

Best for large loan amounts

Max loan amount
$1,500,000
Min. credit score
570

Fora Financial - Online term loan

Best for large loan amounts

4.7 
Max loan amount
$1,500,000
Min. credit score
570

Headway Capital - Line of credit

4.7 

Best for easy application process

Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%

Headway Capital - Line of credit

Best for easy application process

4.7 
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%

QuickBridge - Online term loan

4.1 

Best for prepayment discounts

Max loan amount
$500,000
Min. credit score
600

QuickBridge - Online term loan

Best for prepayment discounts

4.1 
Max loan amount
$500,000
Min. credit score
600

Fundbox - Line of credit

4.9 

Best for startups

Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%

Fundbox - Line of credit

Best for startups

4.9 
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%

American Express® Business Line of Credit*

5.0 

Best for business lines of credit

Max loan amount
$250,000
Min. credit score
660
Learn More

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American Express® Business Line of Credit*

Best for business lines of credit

5.0 
Max loan amount
$250,000
Min. credit score
660
Learn More

with Fundera by NerdWallet

AltLINE - Invoice factoring

4.7 

Best for business-to-business companies

Max loan amount
$5,000,000
Min. credit score
300

AltLINE - Invoice factoring

Best for business-to-business companies

4.7 
Max loan amount
$5,000,000
Min. credit score
300

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Table of contents

A closer look at the best short-term business loans

Bluevine

Best for fast funding
Term length:
6
months.

Expansion Capital Group

Best for bad credit
Term length: 3 to 12 months.

OnDeck

Best for working capital needs
Term length:
18
to
24
months.

Fora Financial

Best for large loan amounts
Term length:
4
to
18
months.

Headway Capital

Best for easy application process
Term length:
12
, 18 or
24
months.

QuickBridge

Best for prepayment discounts
Term length:
4
to
18
months.

Fundbox

Best for startups
Term length:
3
or
6
months.

American Express® Business Line of Credit

Best for business lines of credit
Term length:
6
, 12, 18 or
24
months.
*See disclosure at bottom of page.

AltLINE

Best for business-to-business companies
Term length: Invoices that are up to 90 days outstanding.

What is a short-term business loan?

A short-term business loan is a small-business loan that typically has a shorter repayment period, ranging from three to 12 months — although some terms may go up to 24 months.
Short-term business loans can be useful for covering working capital needs and short-term expenses, paying for emergency expenses or taking advantage of an unexpected business opportunity.

How do short-term business loans work?

Short-term business loans are generally structured as lump sums of capital that you pay back over a set period of time, or term. These loans are usually repaid on a daily or weekly basis, meaning you’ll make larger, more frequent payments than you would with a long-term business loan.
Short-term loans are most often issued by online lenders, which offer fast funding and streamlined applications. Compared with bank or Small Business Administration lenders, short-term lenders typically have more flexible qualification requirements and may work with startups or businesses with bad credit.

Short-term business loan interest rates

Short-term business loans generally have higher interest rates than longer-term loans or more traditional financing options. Interest rates can range anywhere from 10% to 99% APR.
And although some short-term lenders use an annual percentage rate, others might offer a simple interest rate, or even a factor rate. You should always calculate these rates (and fees) into an APR, as this makes it easier to compare products and is the best way to understand how much the loan costs.
» MORE: Estimate loan costs with NerdWallet’s business loan calculator

Types of short-term business loans

Here are some of the most common types of short-term business loans:

Business term loan

A business term loan provides a one-time lump sum of cash that you repay over a set period of time, with interest, to the lender. Term loans can be used for a variety of purposes such as paying short-term expenses, investing in specific projects or making large purchases.

Business line of credit

A business line of credit allows you to access capital as it’s needed for your business. After a lender approves you for a set limit, you have the flexibility to determine how much money to withdraw and when. You’ll make regular payments and pay interest on the funds you draw. Lines of credit can be a good option for working capital, cash flow gaps, seasonal slows and emergency funding.

Invoice factoring

For business-to-business companies, invoice factoring can be an option for short-term funding. Invoice factoring involves selling unpaid invoices to a factoring company at a discount in exchange for a cash advance. The factoring company then assumes responsibility for collecting payment from your customers. It can be a good option if your business has a large amount of cash tied up in unpaid invoices.

Merchant cash advance

A merchant cash advance (MCA) can be an option for a business that has substantial debit and credit card sales. MCA companies give you an upfront sum of capital that you repay using a percentage of your debit and credit card sales, plus a fee. MCAs can have extremely high APRs, however, so they should be used as a last resort option.

Pros and cons of short-term business loans

Pros

Cons

When to consider a short-term business loan

Here are situations when a short-term business loan may be the right fit for your needs:
  • Working capital needs. Short-term business loans can provide quick access to funds that can be used to cover day-to-day business operations and expenses such as rent, supplies, inventory and payroll. These loans may be a good option for businesses that can’t qualify for more traditional financing.
  • Unexpected business opportunity. If you receive an unexpected business opportunity, a short-term loan may be a good option to help grow revenue or even cut costs. It can provide the funds needed to take on a new customer and hire additional staff or take advantage of an inventory discount for buying in bulk, for example.
  • Seasonal cash flow gaps. Seasonal businesses often experience interruptions in cash flow during the off-season. A short-term business loan can provide quick access to the funds you need to keep operations running when sales fall off or meet the costs of preparing for the upcoming season.
  • Emergency expenses. If you need to replace a crucial piece of broken equipment, a short-term loan may be a good option. These loans can help you cover emergency expenses as a result of a natural disaster, accident or economic difficulty.

How to get a short-term business loan

Follow these steps to get a short-term business loan:

1. Assess your financing needs

Think about how much funding you need and what you want to use it for. You’ll also want to consider what type of business loan is right for you.
Since short-term business loans have more frequent payments and higher interest rates, make sure your business can afford any debt you take on.

2. Evaluate your qualifications

Although short-term lenders often have flexible business loan requirements, you’ll want to know where your company stands before applying. Know your time in business and annual revenue, and check your credit score — as many lenders use these three criteria to evaluate your loan application.

3. Find and compare lenders

Once you have an understanding of your funding needs and qualifications, you can explore lenders to find the best choice for your business. As you compare different options, consider factors such as interest rates, additional fees, repayment terms, funding speed and lender reputation.

4. Submit your application

Short-term lenders typically offer a streamlined, online application that can be completed fairly quickly with minimal documentation. Although business loan application requirements vary by lender, you may be asked to provide business and personal tax returns and bank statements as well as business financial documents, such as a profit and loss statement.
Short-term lenders don’t usually require physical collateral to secure your loan, but you’ll likely have to sign a personal guarantee. Your lender may also take out a general lien on your business assets.

5. Close your loan

Before you sign a business loan agreement, you should compare all loan offers you receive to make sure you’re getting the best deal for your business. You’ll also want to thoroughly review the agreement and make sure you understand the repayment terms, interest rate and additional fees. If you have any questions, ask the lender for clarification before signing.

When to consider alternatives to short-term business loans

In some cases, a short-term loan may not be your best option. In these instances, you may consider an alternative:
Situation
Financing alternative
Your loan payment amount is too large
If the payment amount on your short-term loan is outside your budget, a business loan with a longer repayment period may offer a lower monthly payment. Long-term business loans can have terms up to 10 years, and even 25 years, in some cases. Depending on the rate, however, you may pay more in interest over the life of the loan.
Frequent payments will disrupt your cash flow
Short-term lenders often require daily or weekly payments. A business credit card, however, operates similar to a business line of credit and typically requires monthly payments. But carrying a balance instead of paying off the card in full each month can get expensive.
Taking on additional debt isn’t possible
If your business isn’t generating enough revenue to take on another debt payment, business grants may be an option. Business grants don’t require repayment, but competition for them is strong.
You can’t meet lender requirements
If you don’t meet lender requirements for a loan because you have a low credit score or haven’t been in business long, consider using crowdfunding to create a fundraising campaign for your business. It can be a low-cost way to raise capital and also an opportunity to build an enthusiastic client base — without taking on additional debt.

Frequently asked questions

*
American Express® Business Line of Credit*
offers two loan types, installment loans and single repayment loans for eligible borrowers. All loan term types, loan term lengths, and pricing are subject to eligibility requirements, application, and final approval. This content contains general information about the
American Express® Business Line of Credit*
installment loan type only.
Last updated on May 19, 2025

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
To come up with our list of the best short-term business loans, we selected lenders with term lengths of 24 months or less and strong NerdWallet star ratings.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms. - Flexible payment options. - Fast funding times. - Accessible customer service. - Reporting of payments to business credit bureaus. - Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

See Your Loan Options
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